Responding to criticism that it was too expensive, Sony announced Friday it was cutting the price of the ambitious PlayStation 3 game console, due out Nov. 17, by 20 percent in Japan. The move was the latest setback for a product that Sony hopes will not only do well on its own but also spur sales of the company's HD movies, fast-action video games and HD television sets. The unit's launch already had been postponed from the spring. And two weeks ago, citing manufacturing difficulties, Sony delayed the launch in Europe until March and halved its shipment target for this …

Supporting its goal of selling cars fueled by hydrogen by 2011, General Motors is building a prototype of an affordable, compact device that would allow customers to fill their cars overnight in their own garages. Using either electricity or sunlight, the unit would help sidestep the problem of persuading oil companies to invest in expensive new hydrogen stations that would compete with their core product, gasoline. Next year, GM plans to place 100 hydrogen fuel-cell versions of its Chevrolet Equinox SUV into the hands of consumers in Washington, D.C., California and New York. Fueling is a problem. California, with the …

As part of its new "Keep It Simple" campaign, the Gap has introduced a commercial for its slim black pants that features Audrey Hepburn in a clip from the 1957 romantic comedy "Funny Face." Dressed in a black turtleneck and black pants, Hepburn is shown leaping from her chair in a Paris nightclub, exclaiming: "I rather feel like expressing myself now. And I could certainly use the release." She starts a goofy Bohemian dance, and then springs from the frame onto a white background as the AC/DC song "Back in Black" blares. Reaction to the ad has been "polarizing," but …

Dewar's White Label hopes that Tommy will do for it what Audrey Hepburn is doing for the Gap. "Tommy" is Sir Thomas Dewar, the 19th-century purveyor of Scotch and star of a new campaign for the No. 1-selling Scotch in the U.S., which is now marketed by Bacardi USA. The campaign features actual aphorisms uttered by Sir Thomas in his lifetime, such as "Life is full of trials, with an occasional conviction," and "Don't question your wife's judgment. Look who she married." "His sayings are actually published," says Gonzalo de la Pezuela, vp-group marketing director for scotch and tequila at …

Nike Inc. says its fiscal-first-quarter profit fell 13 percent, despite revenue gains of 9 percent, because of increased marketing spending around the World Cup soccer tournament and other initiatives, as well as expenses related to stock-options expenses. While Nike CEO Mark Parker says its World Cup "joga bonito" soccer community was a success and touts the company's $1.5 billion in soccer sales, Nike-endorsed teams failed to make it to the finals. The company saw strong growth in areas like Nike Golf and Brand Jordan. Revenue generated by the company's Nike Skate operations more than tripled. Looking ahead, Parker points to …

Teaming up with Goodby, Silverstein & Partners in San Francisco, Google is producing a test of an online campaign for Saturn cars by bundling together several Google products and services, like clickable video clips, the Google Earth satellite mapping tool, and geographic findings of computer users. The project, which begins today, is designed to convince marketers that Google is not just for text ads. Visitors to a variety of Web sites in Buffalo, Dallas, Harrisburg, Pa., Indianapolis, Las Vegas, and Raleigh, N.C. will see what look like typical banner ads for Aura, a new Saturn midsize sedan. Clicking on an …

The Florida Citrus Commission is spending most of its $25 million orange-juice marketing budget for 2006-07 on two TV ads that continue its 3-year-old "health and wellness" theme. "Touchless," scheduled to air in January for the cold-and-flu season, starts in an office boardroom with participants reaching out to shake hands, but withdrawing before touching. The scene switches to a subway platform, where two women stop just short of hugging; a ballroom where a couple dances without touching; and finally to a wedding in which the couple blow kisses at each other. The ad finishes with OJ pouring and a voiceover: …

Dubbing its new extended-stay hotel brand "Element," Starwood Hotels & Resorts Worldwide says the extension of its Westin brand will be more upscale than most competitors. It will feature large kitchens with stainless steel appliances and gourmet pantries, and customized closets. It also will have attributes like the Westin Heavenly Bed, and Westin Workout facilities with access to personal trainers. About 1 million customers who stayed at a Starwood hotel during 2005 also spent nights at another brand's extended-stay lodging, which caters to business travelers. "That was a huge wake-up call for us," says Susan Brush, svp at Westin Hotels …

Motorola, the No. 2 global wireless handset manufacturer, is testing an automated vending format in which consumers are served the item of their choice by a robotic arm. Leveraging small-format robotic stores operated by Zoom Systems, Motorola says the retail option will be will be branded INSTANTMOTO, and will be placed in high-traffic locations for on-demand, instant customer gratification. The vending systems are already live in the San Francisco International Airport and in three Chicago locations, including Macy's on State Street. They could appear in approximately 20 locations nationwide, from airports to malls, by November. The stores will house more …

In a move that would set the $32.8 billion family-dining industry on its head, McDonald's CEO Jim Skinner told an investor's conference yesterday that the fast-food giant might sell its popular breakfast items at all hours of the day. It would be a direct challenge to breakfast-all-day kingpins Denny's and IHOP. Most fast-food restaurants stop serving morning meals by 11 a.m. All-day breakfast would become feasible at some McDonald's with a kitchen design and technology that don't require switching grills that fry pancakes in the morning to cook burgers later. Improved breakfast sales on the current schedule have been key …